Your Financial Guide: 4 Smart Ways to Boost Your Borrowing Capacity
One of the major parts of personal finance is your borrowing capacity. To put it simply, this refers to the amount that a financial institution can lend you when you’re planning to purchase any property. Lenders take several factors into account and often have different qualifications for increasing a client’s borrowing capacity. All these are considered to prevent anyone from borrowing more than they can repay.
Among the most common factors that lenders use for calculations are liabilities, income, and expenses. Personal loans, car loans, and credit card limits fall under liabilities, which can significantly limit a person’s borrowing capacity. By knowing how much you can borrow, you can better gauge what property fits you. To find out more about borrowing capacity and how to incre...